Admitted Rajaratnam Tipster Settles SEC Insider-Trading Case

May 18 2010 | 11:12am ET

Anil Kumar, the former McKinsey & Co. executive who said that Galleon Group founder Raj Rajaratnam paid him for insider tips, will pay $2.8 million to settle civil charges related to the case.

Kumar agreed to pay $2.6 million in restitution and more than $190,000 in prejudgment interest to settle the Securities and Exchange Commission lawsuit, filed against him after he was arrested last year and charged with passing on confidential information about McKinsey clients to Rajaratnam.

Kumar pleaded guilty in January to conspiracy and securities fraud as part of a plea deal with prosecutors. He told a judge that the Galleon founder paid him as much as $2 million for tips between 2004 and last year—an allegation that Rajaratnam, who has pleaded not guilty, denies.

Kumar faces up to 25 years in prison when he is sentenced, but is likely to get far less due to his cooperation with the investigation.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.